Apple's patent victory over Motorola is huge

The tech giant alleged Motorola was illegally attempting to block its sales by abusing patents.

By Trefis Mar 2, 2012 2:53PM

Image: Laws (© Medio Images/SuperStock)

Apple (AAPL) this week scored a huge victory when a court ruled that Motorola Mobility (MMI) can't enforce standard-essential patents against it in Germany. 


Motorola had demanded a 2.25% royalty on iPhone sales related to a single patent involved with 3G/UMTS wireless standards. Apple argued that Motorola's licensing agreements were unfair and did not follow Fair, Reasonable and Non-Discriminatory terms (FRAND). 


The decision is a loss for Google (GOOG), which recently won U.S. Department of Justice approval for its $12.5 billion acquisition of Motorola Mobility (see Google Wins EU, US Approval to Scoop Up Motorola and its Patents).


Apple has always believed that Motorola was illegally attempting to block sales of its products by leveraging patents that should have been offered under FRAND licensing. Last month we discussed how Google's promise to follow fair licensing for Motorola patents was questionable (see Google Promises EU Regulators it Will Play Nice While Motorola Goes After Apple). As a result of the court decision, Motorola cannot enforce attempts to ban Apple's iPhone and iPad products, which will help Apple maintain its momentum in the smartphone and tablet market.


Apple iPhone Market Share in Mobile Phones.png

 

The main motivation behind Google's acquisition of Motorola was the trove of patents it possesses. Patents are playing an increasingly important role in the smartphone industry and companies are jockeying to build up their portfolios. With such arsenals, large companies can deter others from suing them for patent infringement. Google has lagged in this area and given the rising importance of its Android platform and the mobile boom, it needs these patents to protect its growth.


However, with Motorola losing the patent battle against Apple, there are doubts as to whether Google's $12.5 billion was well spent.


See our complete analysis of Apple here.

15Comments
Mar 2, 2012 4:45PM
Mar 2, 2012 6:35PM
Mar 2, 2012 5:52PM
avatar

"Apple is a joke..." only to those who've never used their products.

 

Why do you insult the millions who choose Apple products? Or do you think someone is forcing adults around the planet to buy Apple's "toys"?

Mar 2, 2012 7:30PM
avatar

Yea Apple is a joke...thats why the stock is up by way over 500%....and the joke is on you, us stockholders are laughing all the way to the bank and back again.

I love my Ipad, IPhone, IPod, Apple TCV and my Mac

5 years ago I was a PC user too

there are millions of EX PC now Macers out there, and we grow by the thousands everyday

 

 

Mar 2, 2012 6:58PM
avatar

I'll stick with my Droid X!!! I believe its a better program anyway!!!!

Mar 4, 2012 11:12PM
avatar

Apple haters only need 10 dollar phones and pay as you go plan.

However Apple users get the Apple cloud, Siri, photoshop,  half a million apps, 1260 by840 resolution sophisticated phone capabilities and graphics.

Ipad3 will be released this month.

You may say  what pay for the cloud.  No you dont, free Apple cloud. What is a cloud.  A cloud is an independent network of computers, which you store your data, and collaborate with peers.

Time Warner and Netflix sweet on ipad3 with awesome pixel performance.

I am not a simpleton hater.  Stick with your android. Be stuck in a lower rung in the chain of evolution.

This is the information age, and I will have the tools to utilize it.

Mar 4, 2012 11:15PM
avatar
@Frankly True doubt you are a stockholder! Typed on a Mac! Us stockholders funny **** good luck with yo 3 shares
Mar 4, 2012 11:13PM
avatar
I have chosen a Motorola product and for my needs, it is far better than the Apple items.  We shopped all up and down the line before purchasing, and I am SO GLAD I did  not fall for the I phone...Apple will not be getting any of our business anytime soon.  We LOVE our easy to use new phones...
Mar 4, 2012 11:05PM
avatar
Once again Europe leads the way.  Anti-trust laws have never been intended to protect consumers.  They're bought and paid for by companies conspiring with government against competition.
Mar 2, 2012 7:03PM
avatar
apple is not a joke.Your a joke because you dont own any aapl products!You just jealous.HAha...
Mar 2, 2012 6:19PM
avatar
Apple is a joke. I have used many of them. They used to be a very good company until a combination of competition and greed took over. Their hardware was always much better than PC. Once they adopted the PC hardware model essentially lowering the specs, speed etc. and left the price high, even raising it over time, they went to hell. None of their hardware is better than what is currently out. PCs have advanced greatly while Apple is stuck on old tech. It isn't even close to competing with their highest priced items. Spending the same amount of money on a PC as an Apple with get you a much faster and capable unit that will hold up over time. The Ipods and phones are no different. Dated hardware with very low specs and a junk OS all at a high price tag. What they are great at is marketing and styling. They make it seem like it is the best thing out and it looks pretty. Kinda like a Lambo with a 2 cylinder engine. Lots of...pardon the pun....Flash but no go. We all know Apple doesn't support Flash. Maybe with Steve Jobs out of the picture and the billions of stolen money they have, they will release something great. For now, Samsung is killing them in terms of smartphone and tablets spec wise and Android is a much better OS than IOS.
Mar 2, 2012 8:00PM
avatar
Apple is a joke. Bought my first Apple product, IPad 2. I was out of town and thought I would try one. I coulnd't even use the thing because you have to sync it a computer with I tunes on it. Took it back 30 min later and bought a android based tablet. worked great out of the box. Never will buy anything apple again.
Mar 2, 2012 5:29PM
Mar 2, 2012 4:50PM
avatar
Remember Apple also has the SLAVES in CHINA now they wont have to take a cut in pay
Mar 2, 2012 5:32PM
avatar

Apple is a joke and their products are toys for children.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

118
118 rated 1
270
270 rated 2
472
472 rated 3
714
714 rated 4
624
624 rated 5
608
608 rated 6
623
623 rated 7
445
445 rated 8
319
319 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.